What is shared equity?
Shared equity means a government body (or an approved provider) chips in part of a home's purchase price and, in return, owns that same share of the property. You buy with a smaller deposit and a smaller mortgage. When you sell, or buy them out, they take their share back. In South Australia in 2026 there are two main schemes: the federal Help to Buy and the SA Government's HomeStart Shared Equity Option.
The short version
A normal purchase: you own 100% of the home and borrow whatever you can't cover with your deposit. A shared-equity purchase: the government owns a slice (say 25% or 30%), so you only need a mortgage on the rest. Smaller loan means a smaller deposit, lower repayments, and in some cases no Lenders Mortgage Insurance (see LMI).
The trade-off is that you don't own the whole home. The government's share rises and falls with the property's value, so when you sell, they get their percentage of the sale price, including any capital gain. It lowers the cost of getting in, not the eventual cost of owning outright.
The two SA schemes in 2026
These are separate programs with separate rules. You apply to one or the other, not both at once. Figures below are indicative for 2026 and change, always confirm current thresholds on the official scheme pages.
| Help to Buy (federal) | HomeStart Shared Equity (SA) | |
|---|---|---|
| Run by | Australian Government via Housing Australia | HomeStart Finance (SA Government lender) |
| Government share | Up to 40% of a new home, up to 30% of an existing home | 5% to 25% of the price (capped at $200,000) |
| Deposit | As low as 2% | Used to shrink your main HomeStart loan |
| Price cap (Adelaide) | $700,000 (lower in regional SA) | $750,000 |
| Income cap | $100,000 single / $160,000 joint or single parent | Net household income up to $110,000 |
| Places | Capped: 40,000 nationally over four years | Subject to HomeStart lending criteria |
| Cost of the share | No rent or interest on the government's share | Interest-free and repayment-free |
Help to Buy is the "new rule" most people mean: it launched in December 2025 and applications are now open. Places are limited (around 10,000 a year nationally), so it is not guaranteed even if you qualify.
How it works when you sell
With both schemes, the government's stake is a percentage, not a fixed dollar amount. If they own 30% of a $600,000 home and you later sell for $700,000, they receive 30% of $700,000 ($210,000), not their original $180,000. You keep the rest. The same works in reverse if values fall. You can usually buy back their share over time in steps, which is how you move toward owning 100%.
Who it suits, and who it doesn't
- Suits: buyers with a steady income but a small deposit, who'd otherwise be locked out or stuck paying heavy LMI.
- Less ideal if: you expect strong capital growth and want all of it, or you're close to affording the place outright. Giving up a share of future gains can cost more than it saves.
- Watch the caps: a purchase a few thousand dollars over the price cap misses the scheme entirely, the same trap as the FHOG and stamp duty thresholds.
How to check and apply
You apply directly through the scheme, not through this site. For Help to Buy, start at the Australian Government's firsthomebuyers.gov.au and Housing Australia. For the SA option, see HomeStart Finance. Before you commit, run the real numbers on the actual property so you know what you'd owe with and without a government partner.
Read more
What would this property cost you, with and without a government share?
The All-In SA Cost Calculator shows stamp duty, fees, and the FHB concession on any purchase price, so you can compare a normal purchase against a shared-equity one.
Open the cost calculator →